Digna Co., a subsidiary of Shell Corpo. Began operations at the beginning of 2014. The functional currency of Digna Co. is the Italian lira; the

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Digna Co., a subsidiary of Shell Corpo. Began operations at the beginning of 2014. The functional currency of Digna Co. is the Italian lira; the functional currency and reporting currency of Jill Corporation is the Philippine peso. The statement of financial position of Jack Company on January 1, 2014 showed land for 40,000 liras, building for 95,000 liras; machinery for 25,000 liras; long term debt for 50,000 liras; and ordinary share capital of 110,000 liras. A combined statement of income and retained earnings in liras for Jack Company for 2014 is as follows:

Sales 300,000

COGS 200,000

OPEX(including depreciation expense of 12,000) 55,000

Profit 45,000

Beg. R/E -------

Dividends 12,500

Ending R/E 32,500

The statement of financial position for Digna Company in liras on December 31,2014 is presented below.

ASSETS

Cash 9,500

Accounts Receivable 25,000

Inventories 30,000

Land 40,000

Buildings, net 85,500

Machinery, net 22,500

TOTAL ASSETS 212,500

LIABILITIES AND SHAREHOLDER'S EQUITY

Accounts Payable 15,000

Long-term debt 50,000

Ordinary Share Capital 115,000

Retained Earnings 32,500

Total Liabilities and shareholder's equity 212,500

Additional ordinary shares (5,000 liras) was issued in June; dividends were declared and paid in November. The exchange rates for 2014 are as follows:

Beginning of the year 0.50859 per lira

June 0.50732 per lira

November 0.51155 per lira

End of the year 0.51278 per lira

Weighted Averge 0.51168 per lira

Reqd: Translate the financial statements of Digna Company into Philippine Peso. (upload a file)

Correction

Digna- Jack

Shell- Jill